The bill would provide $500 million to $700 million in tax relief to corporations this year. When it is in effect for a full fiscal year, the savings are pegged at more than $1.5 billion.

"For many years, we have listened to employers about the best manner to improve the business climate," Madigan said in a prepared statement. "We have tackled worker compensation reform, reduced the estate tax and created an independent tax tribunal. Cutting the corporate income tax rate is another step I am asking the Legislature to consider.

"I am hopeful this legislation will encourage CEOs to grow their workforces with good paying jobs."

He said the change would drop Illinois from fifth to 35th in national income tax ranking among states.

Madigan's move comes as the Republican candidates for governor hammer Gov. Pat Quinn for the state's moribund economy, lackluster job growth and what they view as a generally unfriendly business climate. At an appearance in Rockford, Quinn said he would "take a look at it."

Mixed reviews

Reaction from the GOP candidates was mixed.

"I am glad to hear the speaker talking about a tax cut rather than a tax increase," Sen. Bill Brady of Bloomington said. "I believe his effort to create a better job climate in Illinois would be even better served if he included a cut in the personal income tax rate, which would benefit small businesses as well as Illinois families."

Venture capitalist Bruce Rauner said the move "is more proof that the Pat Quinn tax hikes were a horrible mistake, but this is only a baby step toward correcting the failures of the past four years. We need to start by getting rid of the entire Quinn tax hike and work to lower corporate and personal taxes."

"Reducing the corporate state income tax to 3.5 percent sends a strong message to employers that Illinois is serious about becoming a better home for businesses," he said.

Sen. Kirk Dillard of Hinsdale needs to see what the plan "really looks like" before declaring support for it.

Page 2 of 2 - "I welcome Speaker Madigan and the Democrats into the discussion finally on the need to overhaul Illinois taxes from top to bottom."

GOP 'cautious'

Senate Minority Leader Christine Radogno, R-Lemont, is also glad that Democrats are looking at the tax issue.

"We unanimously opposed the Democrats' 67 percent tax hike that slammed our economy and hurt working families," she said. "I'm glad there now is a recognition that their tax increase is driving jobs out of Illinois, but small business and individuals need tax relief as well."

House Minority Leader Jim Durkin, R-Western Springs, likes the idea - if it is not a ruse to raise other taxes.

"On the surface we are thrilled that the majority party seems to finally be getting the message that something needs to be done, but remain cautious about how they intend to make up the lost revenue," he said. "Is this a bait and switch to move to a graduated tax, which House Republicans oppose?"

The reaction from business groups was also mixed.

Mark Denzler, vice president and chief operating officer of the Illinois Manufacturers' Association, said the organization thinks the legislation is a "very positive step forward."

He noted, though, that only 20 percent of Illinois companies pay the corporate income tax. Medium and small companies pay income taxes at the personal rate, which the bill would not change. Nonetheless, he said, lowering the tax would help the state's perception as a place to do business.

Kim Maisch, Illinois director of the National Federation of Independent Business, said 75 percent of small-business owners don't pay the corporate tax.

"We hope this proposal will be coupled with something else that may help small business," she said.

Madigan said his plan would make Illinois' corporate tax rate equal to or lower than surrounding states.